5/8 #8 Financial or Managerial accounting? (3 points) 1. Financial or Managerial Not required by GAAP 2. Financial or Managerial Emphasizes Timeliness 3. Financial or Managerial Emphasizes Verifiability #9 Classify Costs (7 points) For each of the costs below identify if it is: (A) PRODUCT or PERIOD cost, and (B) DM DL MOH SELL ADMIN 1. Supervisor in the factory 2. Depreciation on sales office equipment 3. Storage of finished goods inventory 4. Factory workers 5. Sugar used to make product 6. Supplies for the factory 7. Advertising #10 Classify Costs (4 points) For each of the costs below identify if it is a VARIABLE or FIXED cost with respect to the number of units produced and sold. 1. Direct Labor 2. Manufacturing plant manager's salary 3. Property taxes for the manufacturing facility 4. Cost to ship finished goods to customers #1 Prepare financial statements (15 points) Use the adjusted trial balance below to prepare the annual financial statements for McDonald Huston Inc. Prepare the balance sheet, income statement and statement of retained earnings. McDonald Huston Incorporated Adjusted Trial Balance 12/31/2020 Debit Credit 12,000 50,000 30,000 200,000 110,000 60,000 40,000 15,000 180,000 1,000 107,000 Cash A/Receivalbe Inventory Land Equipment A/Depreciation A/Payble Unearned Revenue Note Payable Common Stock Additional Paid in Capital Treasury Stock Dividends Retained Earnings Sales Revenue Sales Discounts Cost of Goods Sold Wage Expense Rent Expense Depreciation Expense Other Expenses Total 50,000 3,000 25,000 300,000 10,000 150,000 75,000 24,000 10,000 4,000 728,000 728,000